North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency has two great programs for First Time Home Buyers. These programs will be the Mortgage Credit Certificate as well as the Down Payment Assistance Program.

You buy a home between January 1, 2009 and December 1, 2009 and if you meet the requirements for one of the plans, you can even be eligible for the $8,000 tax credit just enacted into law.

First, who is a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the past three years. Here is exactly the same qualifying definition.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with low and moderate incomes. The MCC takes this a step further. An MCC “reduces your tax liability depending on a percentage of the mortgage interest which you pay.

You can claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes in case you qualify for the MCC. It is possible to save around .

You will have the ability to combine this should you qualify for the MCC, for 2009. This might reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on your income and the purchase price of the property you are buying. Household income means the “gross income of the mortgagor and any other individual expected to live in the residence who's 18 years old or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Individual $61,500 2 Persons $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Cost Limitations New Dwelling $220,000 Existing Home $210,000

The purchaser only needs to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan summarized above. Like the MCC application, it can be used in conjunction with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit help, nonetheless, can't be employed together with all the MCC. This is an either or scenario.

House price limitations that apply in Durham Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Residence $210,000